Developing Mexican Silver-Zinc Production
Xtierra Inc. (TSXV | XAG) is a Toronto based and TSX Venture Exchange listed mineral exploration and development company focused on the development of precious and base metal projects located in the State of Zacatecas, Mexico.
Xtierra plans to become a mid-tier producer of silver and base metals through the development of its Bilbao deposit located in the Central Mexican Mineral Belt in the State of Zacatecas, as well as through exploration and acquisition opportunities.
Bilbao
Xtierra's primary project is the Bilbao silver-zinc-lead-copper deposit situated in the Panfilo Natera district of Zacatecas, approximately 50 km south of the state capital of Zacatecas where Xtierra is currently completing a bankable feasibility study.
In May 2011, Xtierra published a revised independent resource estimate, compliant with National Instrument 43‐101, for the Bilbao deposit which shows a 10% increase in Indicated Resources from the February 2010 estimate to 10.62 million tonnes and represents a 6% increase in total metal content, as zinc equivalent, from 650,565 tonnes Zneq to 688,258 tonnes Zneq. In the indicated category, sulphide resources represent 50% of the resource (up from 35% in the 2010 estimate), mixed oxide and sulphide resources represent 15% (down from 22%) and oxide resources represent 35% (down from 43%) of the total Indicated Resource. For the purpose of determining resources at various cut-off grades, zinc equivalent values were determined, based on the average LME metal prices during the 24 month period January 2009 to January 2011.
Xtierra commenced a Feasibility Study of its 100% owned Bilbao project in April 2009, on a phased basis, with the first phase completed in December 2009. The First Phase was focused primarily on the achievement of a flow sheet and extraction process providing acceptable recoveries for the near surface oxide portion of the mineral resource as well as preliminary engineering studies, rock mechanics and environmental studies. Results indicate acceptable metal recoveries can be achieved. Xtierra is continuing with metallurgical optimization through further test work and pilot plant testing together with engineering design studies for a 3,000 tpd open pit mine.
In July, 2010, Xtierra announced that it had retained Dowding, Reynard and Associates (DRA), a recognized leader in the field of mine design, mine engineering, mineral process design, project management and mine construction to complete the feasibility study on Bilbao. DRA has particular expertise in Process Plant Design, Metallurgical Process Engineering, and Metallurgical Consulting and will be intimately involved in the preparation for and commissioning and operation of the pilot plant designed to test the recovery process for the near surface oxide ores at Bilbao.
Pursuant to an earlier financing agreement between Xtierra and Pacific Road Resource Funds ("PRRF"), PRRF has an option to provide up to US$32.5 million in project financing for both the Bilbao and Laguna projects.
Additional Projects
Xtierra holds approximately 20,000 ha of exploration licenses in the surrounding Panfilo Natera mining district as well as its La Laguna silver-gold tailings project and its El Dorado gold project.
La Laguna project is subject of a bankable feasibility study completed by Micon International which contains an estimated mineral reserve of 6,799,000 t, containing an average of 57.92 g/t silver, 0.31 g/t gold and 328.92 g/t mercury.
El Dorado Gold Project - Xtierra commenced initial drilling of its exciting new gold project located in the historic Pinos gold district of Zacatecas in early January 2010.
